diff --git a/VERSION b/VERSION
index ad0bb575..141b1319 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-Version 2.0.8 (2012-09-09 09:14:46) stable
+Version 2.0.8 (2012-09-09 09:20:41) stable
diff --git a/gluon/languages.py b/gluon/languages.py
index e7212136..95be43b6 100644
--- a/gluon/languages.py
+++ b/gluon/languages.py
@@ -220,9 +220,9 @@ def read_possible_plurals():
     create list of all possible plural rules files
     result is cached to increase speed
     """
+    plurals = {}
     try:
-        import gluon.contrib.plural_rules as package
-        plurals = {}
+        import contrib.plural_rules as package
         for importer, modname, ispkg in pkgutil.iter_modules(package.__path__):
             if len(modname)==2:
                 module = __import__(package.__name__+'.'+modname)
diff --git a/gluon/rewrite.py b/gluon/rewrite.py
index 2a6d3af4..da876cd7 100644
--- a/gluon/rewrite.py
+++ b/gluon/rewrite.py
@@ -1063,6 +1063,11 @@ class MapUrlIn(object):
                 raise HTTP(400, thread.routes.error_message % 'invalid request',
                            web2py_error='invalid arg <%s>' % arg)
 
+    def sluggify(self):
+        ""
+        self.request.env.update(
+            (sluggify(k),v) for k,v in self.env.iteritems())
+        
     def update_request(self):
         '''
         update request from self
@@ -1091,8 +1096,7 @@ class MapUrlIn(object):
             urllib.quote('/'+'/'.join(str(x) for x in self.args)) if self.args else '',
             ('?' + self.query) if self.query else '')
         self.env['REQUEST_URI'] = uri
-        self.request.env.update(
-            (sluggify(k),v) for k,v in self.env.iteritems())
+        self.sluggify()
 
     @property
     def arg0(self):
@@ -1282,6 +1286,7 @@ def map_url_in(request, env, app=False):
     #
     thread.routes = params  # default to base routes
     map = MapUrlIn(request=request, env=env)
+    map.sluggify()
     map.map_prefix()  # strip prefix if present
     map.map_app()     # determine application
 
@@ -1295,6 +1300,7 @@ def map_url_in(request, env, app=False):
 
     root_static_file = map.map_root_static() # handle root-static files
     if root_static_file:
+        map.update_request()
         return (root_static_file, map.env)
     # handle mapping of lang/static to static/lang in externally-rewritten URLs
     # in case we have to handle them ourselves
diff --git a/gluon/tests/test_dal.py b/gluon/tests/test_dal.py
index 9fdeccd3..688408a0 100644
--- a/gluon/tests/test_dal.py
+++ b/gluon/tests/test_dal.py
@@ -1,7 +1,7 @@
 #!/usr/bin/env python
 # -*- coding: utf-8 -*-
 """
-    Unit tests for gluon.sql
+    Unit tests for gluon.dal
 """
 
 import sys
@@ -424,7 +424,7 @@ class TestMinMaxSum(unittest.TestCase):
 
 class TestCache(unittest.TestCase):
     def testRun(self):
-        from gluon.cache import CacheInRam
+        from cache import CacheInRam
         cache = CacheInRam()
         db = DAL('sqlite:memory:')
         db.define_table('t', Field('a'))
diff --git a/gluon/tests/test_languages.py b/gluon/tests/test_languages.py
index 635eeea2..5fda85e6 100644
--- a/gluon/tests/test_languages.py
+++ b/gluon/tests/test_languages.py
@@ -59,7 +59,10 @@ try:
 
         def setUp(self):
             self.request = Storage()
-            self.request.folder = 'applications/welcome'
+            if os.path.isdir('gluon'):
+                self.request.folder = 'applications/welcome'
+            else:
+                self.request.folder = os.path.realpath('../../applications/welcome')
             self.request.env = Storage()
             self.request.env.http_accept_language = 'en'
 
diff --git a/gluon/tests/test_markmin.py b/gluon/tests/test_markmin.py
index a300d3ed..643a100a 100644
--- a/gluon/tests/test_markmin.py
+++ b/gluon/tests/test_markmin.py
@@ -11,7 +11,7 @@ else:
     sys.path.append(os.path.realpath('../'))
 
 import unittest
-from gluon.contrib.markmin.markmin2html import run_doctests
+from contrib.markmin.markmin2html import run_doctests
 
 class TestMarkmin(unittest.TestCase):
     def testMarkmin(self):
diff --git a/gluon/tests/test_web.py b/gluon/tests/test_web.py
index 54295c88..06cf9a4c 100644
--- a/gluon/tests/test_web.py
+++ b/gluon/tests/test_web.py
@@ -11,7 +11,7 @@ else:
     sys.path.append(os.path.realpath('../'))
 
 import unittest
-from gluon.contrib.webclient import WebClient
+from contrib.webclient import WebClient
 
 class TestWeb(unittest.TestCase):
     def testWebClient(self):